Guotai Junan to merge with Haitong Securities

Guotai Junan Securities (SSE: 601211) will absorb and merge with Haitong Securities (SSE: 600837) in a share exchange. Guotai Junan will issue both A-shares and H-shares to Haitong’s shareholders at a ratio of 1:0.62. Concurrently, Guotai Junan will raise up to RMB 100 billion in supporting funds via a private placement of A-shares to its controlling shareholder, Shanghai State-owned Assets Operation Co., Ltd. Post-merger, the combined entity will retain Guotai Junan's name and maintain its listing on the Shanghai and Hong Kong Stock Exchanges, while Haitong Securities will be delisted. As of September 30, 2024, Guotai Junan had total assets of RMB 9.32 trillion and net assets attributable to the parent company of RMB 1.66 trillion, while Haitong Securities had total assets of RMB 6.93 trillion and net assets attributable to the parent company of RMB 1.61 trillion.